Mitchell’s laws: To survive, a monetarily non-sovereign government must have a positive balance of payments. Economic austerity causes civil disorder. Reduced money growth cannot increase economic growth. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
Well, my congressman, Robert Dold is trying. He almost, but not quite, gets it. I continue to wonder: Why is this so hard? Here is part of a letter he just sent me:
Last week the President laid out his plan to create jobs. I was pleased to hear that the President joined me in endorsing payroll tax relief – similar to legislation that I have already put forward – as a way to spur the hiring of unemployed workers. My bill is straightforward and helps employers grow and hire. For every unemployed worker a company hires, my legislation would suspend the payroll tax for the business and employee for one year.
Rep. Dold, businesses will not hire people and pay additional salaries, just to get a FICA deduction. Businesses hire people when business improves. Why restrict this to hiring unemployed people? And if it is any incentive at all, it’s an incentive to fire current workers and hire unemployed workers.
This will not only help businesses create more jobs, it will put unemployed people back to work. From my experience as a small business owner, I am confident that this measure will provide a significant incentive that helps American businesses take the calculated step of bringing on a new employee.
He was a small business owner?? Really? And in his small business would he have said, “Hmm, I can hire a worker I don’t need at 6.5% less salary than I ordinarily would not pay. Sounds good”? Or would he have said, “I need an employee, but that 6.5% tax keeps me from hiring”? No wonder he no longer is in business.
While there is still much more work to be done, I am certain that temporarily reducing the payroll tax to 0% would be an effective component of our overall efforts to get this economy moving again.
And why make the cut a temporary reduction. Why not make it a permanent elimination? After all, FICA doesn’t pay for anything — not Social Security, not Medicare, not anything — so why is this most regressive tax continued? It should be abolished, thereby putting money in the pockets of almost all working people and businesses.
Our Monetarily Sovereign government should support Social Security and Medicare. It can and it should.
Even an “experienced small business owner” doesn’t quite get it, but he’s trying. To read “Ten Reasons to Eliminate FICA,” click this link.
Just one little dunce cap for Rep. Dold, who almost is there.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. The key equation in economics: Federal Deficits – Net Imports = Net Private Savings